Preference Shares

What are Preference Shares?

Preference shares carry special rights, often to fixed dividends and priority over ordinary shares if the company is wound up.

Think of it like this…

They’re like a VIP ticket — guaranteed benefits, but usually less voting power.

Why does it matter?

• Attractive to investors who want predictable income
• Can be structured to suit specific financing needs
• May be redeemable or convertible into ordinary shares

Best practice

Clearly set out the rights in your Memorandum of Incorporation (MOI) to prevent disputes.